When should I sell my home?
Your answer to this question
might be right now! If you have taken a job in another city or made an
offer on a new home, or had an addition to your family, selling your home
fast might be the most important goal you have. Most people, however,
have some flexibility when they sell their home. Let us take a closer
look at the most important factors that can go into this decision.
How quickly must you sell?
If you have decided that now
is the best time for you to sell your home, then, you will probablywant
to complete the process as soon as possible, but will also want to sell
your home at the highest price possible. In a "sellers market", where
many buyers are competing for relatively few homes, speed and top price
can go hand in hand.
However in a "buyers market", when
purchasers can take their time to choose among several properties, you
may discover there is a trade-off between speed and price. Discuss your
specific requirements with a Real Estate Sales Representative, who can
help you decide upon an asking price that will also help you meet your
timing requirements.
Cycles in the market place - what do they mean?
In real estate it is important to know that over the long term, residential real estate
is one of the best investments you can make, while providing you and
your family with shelter. There are cycles in the market that may
affect your decision regarding when to sell. These cycles can create a
shortage of homes, which will push up the prices, or a surplus which
can result in a slowdown of rising prices.
What drives these
cycles - the overall economy is most obvious. In periods of economic
growth when employment is strong and people have confidence about their
futures demand for housing grows and is high. When, however, there is a
slow down in the economy and unemployment is high, - more homes will
come on the market, and buyers will typically wait for times to
improve. Keep in mind that these economic fluctuations can be national
in scope or affect only certain pockets of the country.
Changing
interest rates also influence real estate market cycles. When interest
rates rise, fewer people can qualify for any given mortgage amount and
demand drops - making it tougher to sell your home, or obtain the price
you want. The same is true when interest rates fall, more people can
afford to a buy home or qualify for financing so the demand for housing
increases.
Does all this mean you need to be an economist to
determine when it is the best time to sell? Not at all! But staying
aware of the things that influence the cycles in real estate will help
you decide when to place your home on the market.
The Seasons of home sales
Seasons
also affect buyer demand and in turn, how long it will take to sell
your home or the price you can obtain. For example, fewer buyers may be
willing to trod through snow drifts (if you live in area with winter
climate) to look at homes, but you will also be competing with fewer
homes on the market.
Conversely, spring tends to be an active
time for real estate sales. Homes and gardens start to look good and
again buyers will come out of hibernation and begin the home hunting
process. Parents with school children particularly like the spring and
are likely to buy a home. Homes are sold throughout the year, so think
of the seasons as only one factor in determining when the best time to
put your home on the market.